Financial Reporting involves the disclosure of financial information to the various stakeholders about the financial performance and financial position of the organization over a specified period of time. These stakeholders include – investors, creditors, public, debt providers, governments & government agencies. In case of listed companies the frequency of financial reporting is quarterly & annually.

Financial Reporting is usually considered as end product of Accounting. The typical components of financial reporting are:

• The financial statements – Balance Sheet, Profit & loss account, Cash flow statement & Statement of changes in stock holder’s equity
• The notes to financial statements
• Quarterly & Annual reports (in case of listed companies)
• Prospectus (In case of companies going for IPOs)
• Management Discussion & Analysis (In case of public companies)

Objectives of Financial Reporting

According to International Accounting Standard Board (IASB), the objective of financial reporting is “to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions.”

The following points sum up the objectives purposes of financial reporting:

• Providing information to management of an organization which is used for the purpose of planning, analysis, benchmarking and decision making.
• Providing information to investors, promoters, debt provider and creditors which is used to enable them to male rational and prudent decisions regarding investment, credit etc.
• Providing information to shareholders & public at large in case of listed companies about various aspects of an organization.
• Providing information about the economic resources of an organization, claims to those resources (liabilities & owner’s equity) and how these resources and claims have undergone change over a period of time.
• Providing information as to how an organization is procuring & using various resources.
• Providing information to various stakeholders regarding performance management of an organization as to how diligently ethically they are discharging their fiduciary duties & responsibilities.
• Providing information to the statutory auditors which in turn facilitates audit.
• Enhancing social welfare by looking into the interest of employees, trade union Government.
• Now let’s discuss few aspects about importance of financial reporting.
• In helps and organization to comply with various statues and regulatory requirements.
• The organizations are required to file financial statements to ROC, Government Agencies.

•  In case of listed companies, quarterly as well as annual results are required to be filed to stock exchanges and published.
• It facilitates statutory audit. The Statutory auditors are required to audit the financial statements of an organization to express their opinion.
• Financial Reports forms backbone for financial planning, analysis, bench marking and decision making. These are used for above purposes by various stakeholders.
• Financial reporting helps organizations to raise capital both domestic as well as overseas.
• On the basis of financials, the public in large can analyze the performance of the organization as well as of its management.
• For the purpose of bidding, labor contract, government supplies etc., organizations are required to furnish their financial reports & statements.

What we do

We have professional staff having professional qualification (CA, ACCA, MBA, and CPA) who are well known about International Financial Reporting Standards (IFRs) and International Accounting Standards and other rules and regulations relating to the presentation of financial reporting and we can support the businesses to prepare and present the following reporting.

• Trail Balance.
• Statement of Financial Position.
• Statement of Comprehensive Income.
• Statement of change in Equity.
• Statement of Cash Flow.
• Notes to the Accounts.
• Ageing of Accounts receivables report.
• Cost Production Report (CPR)
• Other reports as necessary to make the decisions effectively timely.